Integration of Hog Market between China and the United States 2000-2014

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2020-01-01
Authors
Tian, Jiacheng
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Elizabeth Hoffman
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Economics
Abstract

This study aims to ascertain the possible existence of integration between the hog markets in China and the United States. Using national monthly data from January 2000 to December 2014, our results indicate that hog prices between China and the U.S. are cointegrated. Such a result suggests no arbitrage between the two markets. We discuss the reasons why such arbitrage abandons; and conclude that it can be postulated the empirical evidence in integrated U.S. soybean prices alongside other factors may contribute to this result.

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Wed Jan 01 00:00:00 UTC 2020